I say let them foreclose. If you can't afford the house, then sell it, and start renting. It's not that hard.

quote:

Originally posted by Krypton I say let them foreclose. If you can't afford the house, then sell it, and start renting. It's not that hard.

i can't remember the last time we agreed on something.

ironically, we are both democrats (at least we vote democrat) and we don't support this populist plan.

I knew there was still hope for krypton. Underneath that big government pro-fed pro-keynesian, pro-corporate bailout, pro-stimulus facade is a tiny libertarian struggling to break free.

My criteria on government intervention is, 'does this or that pose a systemic risk to the overall economy if allowed to fail' and is in immimant risk of failure. I don't think mortgage foreclosures do that.

quote:

Originally posted by Krypton My criteria on government intervention is, 'does this or that pose a systemic risk to the overall economy if allowed to fail' and is in immimant risk of failure. I don't think mortgage foreclosures do that.

At what point (percentage or whole number wise) would you consider foreclosures to be a systemic risk? After all, if a bank has a piece of real estate on its books, it is losing liquidity.

quote:

Originally posted by jerZ07002 At what point (percentage or whole number wise) would you consider foreclosures to be a systemic risk? After all, if a bank has a piece of real estate on its books, it is losing liquidity.

but gaining liquidity from the Federal Reserve offsetting the deflation in real estate.

quote:

Originally posted by Krypton but gaining liquidity from the Federal Reserve offsetting the deflation in real estate.

the banks will have a corresponding liability associated with the funds provided by the fed. that's not a long term soluation.

quote:

Originally posted by jerZ07002 the banks will have a corresponding liability associated with the funds provided by the fed. that's not a long term soluation.

It's not supposed to be a long term solution. The banks took huge real estate risk and now they are paying for it. The government should be doing only what is needed to prevent a systemic collapse of the economy. You asked, 'what level of would real estate be a systemic risk?' Well, I believe there is no level at which real estate is a systemic risk.

quote:

Originally posted by Joss Weatherby There are also a lot of people that bought very reasonable houses that they couldn't afford in the first place. Not everyone being kicked out of their homes are people that were living beyond a normal persons means.

Is this a joke? I think you may need a class in reality

___________________
"Go back to bed america your government is in control
Here's American Gladiators, here is 56 channels of it,
Watch these picturary retards bang their fuckin' skulls together and congratulate you on living in the land of freedom,
Here you go America you are free to do as we tell you
We want your soul
Your cash, your house, your phone, your cash, your house, your life" -Adam Freeland - We Want Your Soul

quote:

Originally posted by jerZ07002 People who can't afford their mortgages RENT apartments. With declining real estate values, rental expenses should also decline somewhat. The problem isn't that people will become homeless, it is that people who had their 5 bedroom 3.5 bath McMansion foreclosed will have to move back into 2 bedroom 1 bath apartments, and those people don't want to revert back to a 'normal' lifestyle.' I don't want to support someone's excessive lifestyle choices. Fuck them! Not only have they screwed themselves, but they have also screwed people who didn't make bad choices. I have no sympathy for someone who extended himself too far taking out a mortgage 4 or 5 times greater than his annual income, with interest payments exceeding 40-50 percent his after tax income. I have sympathy for the modest worker who lost his job because the excesses of the irresponsible lead to an inflated economy and a sharp correction.

You have no idea how infuriated listening to this BS makes me after paying more for rent in 2-3 months what most pay in a year pay for their mortgage. For 6 years. And for the record, I live in a crappy apartment, not some building with a gym & rooftop pool. But I'd be getting a nice handout if I were stupid enough to buy an apartment when costs were sky-high.

___________________
"Go back to bed america your government is in control
Here's American Gladiators, here is 56 channels of it,
Watch these picturary retards bang their fuckin' skulls together and congratulate you on living in the land of freedom,
Here you go America you are free to do as we tell you
We want your soul
Your cash, your house, your phone, your cash, your house, your life" -Adam Freeland - We Want Your Soul

perhaps every state should require, and I mean REQUIRE their real state agents a.k.a pests to take more examinations and tests, it seems as if anyone can become a real state agent these days. Scary times we living...

That is all, people and their internet...

Estate.

___________________
There are more things in heaven and earth, Horatio,
Than are dreamt of in your philosophy.